What are a co-signer’s rights regarding a loanif the other co-signer files for bankruptcy?
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What are a co-signer’s rights regarding a loanif the other co-signer files for bankruptcy?
A friend co-signed a car loan a couple of years ago with her now ex-boyfriend. She paid a substantial part of the down payment. He’s now filing for bankruptcy (Chapter 13 she thinks, but not sure yet). She took the truck and has been making all payments since they separated. She heard that his inclusion of the note in his plan will affect her credit, and in any case wants to keep making payments as usual, and hopefully get him to sign off on the title at some point. Does she have any right to exclude this loan from the plan if he chooses to be uncooperative?
Asked on June 19, 2011 under Bankruptcy Law, Oregon
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
No, he is required to list any debts he has, which includes the Note. However, if she stays current with the payments, I don't see why it would affect her credit.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
No, he is required to list any debts he has, which includes the Note. However, if she stays current with the payments, I don't see why it would affect her credit.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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